Revenue increases 18.0 percent with 115.1 percent gross profit
improvement. Fiscal 2012 revenue guidance increased.
TORONTO, Sept. 13, 2012 /PRNewswire/ - Patheon Inc. (TSX: PTI), a leading
provider of contract development and manufacturing services to the
global pharmaceutical industry, announced today fiscal 2012 third
quarter and nine month results.
Third Quarter Fiscal 2012 Financial Highlights
Revenues in the quarter increased to $203.7 million from $172.7 million
in the same period last year, an increase of 18.0 percent.
Gross profit in the quarter increased to $55.5 million from $25.8
million in the same period last year, an increase of 115.1 percent.
Adjusted EBITDA increased in the quarter to $34.6 million from $10.3
million in the same period last year, an increase of 235.9 percent.
Income before discontinued operations in the quarter improved to $15.5
million from income before discontinued operations of $0.6 million in
the same period last year.
James C. Mullen, Patheon's Chief Executive Officer said, "We continue to
be encouraged by the progress we make in transforming the company. Our
top line growth in the quarter was strong. Our transformation
activities continue on track, and we are seeing the results of those
efforts in our margins. As a result of the strong growth in the
quarter, we are increasing our revenue guidance for the year to be in
excess of $735 million."
Fiscal 2012 Third Quarter and Nine Month Operating Results from
Revenue for the third quarter increased $31.0 million, or 18.0 percent,
to $203.7 million, from $172.7 million in the same period last year,
driven by growth in existing business, and supported by our
transformation activities. Without the negative impact of foreign
exchange, revenues would have increased by approximately 24.1 percent.
Commercial manufacturing (CMO) revenues for the third quarter increased
$29.6 million, or 21.3 percent, to $168.3 million, from $138.7 million
in the same period last year. Pharmaceutical Development Services'
revenues for the third quarter increased $1.4 million, or 4.1 percent,
to $35.4 million, from $34.0 million in the same period last year.
Revenue for the nine month period increased $20.7 million, or 4.0
percent, to $539.1 million, from $518.4 million in the same period last
year. Without the negative impact of foreign exchange, revenues would
have increased approximately 7.1 percent. The year-over-year growth in
the nine month period would have been up 15.2 percent excluding the
benefit from the contract cancellation in the prior year.
Commercial manufacturing revenues for the nine month period increased to
$438.1 million, or 2.9 percent, from $425.8 million in same period last
year. Excluding the $50.3 million benefit from the contract
cancellation recorded in the first half of fiscal 2011, commercial
manufacturing revenues would have increased by 16.7 percent. PDS
revenues for the nine month period increased to $101.0 million, or 9.1
percent, from $92.6 million in the same period last year.
Gross profit for the third quarter increased $29.7 million to $55.5
million, from $25.8 million last year. The increase in gross profit was
primarily due to higher volumes, operating efficiencies, favorable
material mix and lower depreciation expense.
Gross profit for the nine month period increased to $103.9 million from
$98.3 million in the same period last year. Excluding the $50.3 million
benefit from the prior year contract cancellation, gross profit in the
nine month period would have increased by $55.9 million. The increase
in gross profit was primarily due to higher volumes and lower
depreciation expense, partially offset by the unfavorable impact
associated with replacing high margin revenue from the cancelled
contract with ongoing production at our normal margins.
Income before discontinued operations for the quarter was $15.5 million,
or 12.0¢ per share, both basic and diluted, compared to income before
discontinued operations of $0.6 million, or 0.5¢ per share, both basic
and diluted, in the same period last year. The net loss before
discontinued operations for the nine months was ($83.3) million, or
(64.5¢) per share compared to a loss of ($6.0) million, or (4.6¢) per
share in the same period of fiscal 2011. The net loss before
discontinued operations for the nine months ended July 31, 2012 was
primarily due to the after tax impact of the previously announced
impairment charges of $57.9 million and repositioning expenses of $6.4
million, as well as the after tax impact of $12.1 million from the
consulting fees related to strategic initiatives.
Based on encouraging revenue trends in the first nine months of the year
the company is increasing its full year revenue guidance. The company
expects 2012 revenue to exceed $735 million.
Patheon will host a conference call and Web cast today (September 13,
2012) at 8:30 a.m. EDT. Interested parties are invited to access the
conference call, via telephone, in listen-only mode, toll free at
1-888-231-8191 (U.S., including Puerto Rico) and 1-647-427-7450 (Canada
and International). Listeners are encouraged to dial in five to
fifteen minutes in advance to avoid delays. Slides will also be
available for viewing during the call by accessing Patheon's Web site
at http://www.patheon.com/InvestorRelations/tabid/62/Default.aspx .
A telephone replay of the conference call will be available between
September 13, 2012 and September 20, 2012 by dialing 1-855-859-2056(toll free) or 1-403-451-9481, and by entering identification number
19083494, followed by the number key. The conference call will be
archived at http://www.patheon.com/InvestorRelations/tabid/62/Default.aspx.
Patheon Inc. (TSX: PTI) is a leading global provider of contract
development and manufacturing services to the global pharmaceutical
industry. The company provides the highest quality products and
services to approximately 300 of the world's leading pharmaceutical and
biotechnology companies. Its services range from preclinical
development through commercial manufacturing of a full array of dosage
forms including parenteral, soft gel, solid and liquid forms.
The company's comprehensive range of fully integrated Pharmaceutical
Development Services includes pre-formulation, formulation, analytical
development, clinical manufacturing, scale-up and commercialization.
The company's integrated development and manufacturing network of 10
manufacturing facilities, nine development centers and one clinical
trial material packaging facility across North America and Europe,
enables customer products to be launched with confidence anywhere in